Nifty closes in green for first time in 2014 on firm global equities

Nifty, after declining for straight five sessions, made a positive opening in early deals on Wednesday buoyed by firm global cues. The US markets made a good comeback and ended firmly higher overnight on report that US trade deficit narrowed by much more than anticipated in the month of November. Moreover, most of the Asian markets were trading in the green taking cues from the US markets. Some support came in during the late morning deals after Finance Minister P Chidambaram asked taxmen to step up collections in view of fiscal deficit threatening to exceed the target. Stocks related to gold and jewellery space viz. Rajesh Exports, Shree Ganesh Jewellery, Gitanjali Gems, PCJeweller etc. edged higher, as the Planning Commission member Saumitra Chaudhuri pitched for relaxation in curbs on gold imports citing improved current account deficit. 

The index was unable to hold on to its strength and convert into a buying rally as the 6200 level acted as a formidable resistance zone. Investors remained concern about foreign flows after overseas investors sold 13.29 billion rupees worth of index futures on Tuesday, leading to total sales of 23.34 billion rupees over the previous three sessions, according to exchange data. Trading within a 30-point band between 6190 and 6160 the 50-share index traded listlessly for major part of the day and ended a tad above the neutral ending the five day losing streak.

Most of the NSE sectoral indices made a green closing; CNX PSU Bank up by 1.36%, CNX Pharma up by 1.20%, CNX Auto up by 0.80%, CNX Metal up by 0.49% and CNX Energy up by 0.44% were the top gainers on index. On the other hand, CNX Realty down by 0.61%, CNX Infra down by 0.59% and CNX MNC down by 0.33 were the top losers on index.

The India VIX remained flat at 16.32 as compared to its previous close of 16.30 on Tuesday  The 50-share CNX Nifty increased by 12.35 points or 0.20% to settle at 6,174.60.

Nifty January 2014 futures closed at 6197.50 on Wednesday at a premium of 22.90 points over spot closing of 6,174.60, while Nifty February 2014 futures ended at 6234.75 at a premium of 60.15 points over spot closing. Nifty January futures saw contraction of 0.44 million (mn) units taking the total outstanding open interest (OI) to 17.26 mn units. The near month January 2014 derivatives contract will expire on January 30, 2014.

From the most active contracts, Reliance Industries January 2014 futures traded at a premium of 5.35 points at 854.35 compared with spot closing of 849.00. The number of contracts traded was 19,120.

Tata Steel January 2014 futures were at a premium of 3.40 points at 394.80 compared with spot closing of 391.40. The number of contracts traded was 12,572. 

ICICI Bank January 2014 futures were at a premium of 3.25 points at 1058.50 compared with spot closing of 1055.25. The number of contracts traded was 17,448. 

L&T January 2014 futures were at a premium of 5.85 points at 1004.65 compared with spot closing of 998.80. The number of contracts traded was 9,080. 

SBI January 2014 futures were at a premium of 8.40 points at 1662.10 compared with spot closing of 1653.70. The number of contracts traded was 29,219.  

 Among Nifty calls, 6,300 SP from the January month expiry was the most active call with contraction of 0.16 million in open interest.

Among Nifty puts, 6,000 SP from the January month expiry was the most active put with an addition  of 0.05 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (5.10 mn) and that for Puts was at 6,000 SP (4.88 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6191.02 -- Pivot Point 6175.68 - Support - 6159.27.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.00 for January month contract.

The top five scrips with highest PCR on OI were DR Reddy 2.38, Apollo Tyre 1.87, JSW Steel 1.16, Hexaware 1.01, and Mcleodruss 0.97.

Among most active underlying, SBI witnessed contraction of 0.06 million in Open Interest in the January month futures contract followed by Reliance Industries witnessed  an addition of 0.23 million of Open Interest in the January month contract; United Spirits witnessed contraction of 0.08 million of Open Interest in the January month futures. Infosys witnessed an addition of 0.08 million of Open Interest in the January month contract and ICICI Bank witnessed contraction of 0.37 million in Open Interest in the near month futures contract.